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China bans financial companies from using cryptocurrencies | Business and Economic Affairs

China’s recent attempts to reduce the growing stock market have sent crypto prices down.

China has banned financial institutions and payment companies from providing assistance in dealing with cryptocurrency transactions and warned traders against future crypto trades.

It was a recent attempt by China to reduce what was once a digital marketplace. While such restrictions, organizations such as these, including banks and online payment systems, do not provide customers with any cryptocurrency-related services, such as registration, sale, repair and maintenance, the three corporations said in a statement on Tuesday.

“Recently, the prices of crypto currencies have risen sharply and slightly declined, and corporate forecasts have intensified, which is seriously undermining the security of human assets and undermining the economic and economic viability,” he said in a statement. The three trading organizations are: National Internet Finance Association of China, China Banking Association and Payment and Clearing Association of China.

China has banned crypto exchanges and initial offers but has not banned people from owning cryptocurrensets.

Organizations should not fund, trust or promise cryptocurrency transactions, or provide cash-related transactions, he said.

No digital posters

Bitcoin and other major deposits were held after the People’s Bank of China issued a recurring statement that digital tokens could not be used as a payment method.

The big stock fell nearly 7.3% to $ 40,139 in Asia on Wednesday, and continued a week-long release sparked by the company’s initial Tesla founder’s comments on the company’s investment. Ether, Dogecoin and last week’s hearing, Internet Computer, are also back.

This was not the first time Beijing had acted against digital currency. In 2017, China shut down the cryptocurrency exchanges, igniting a speculative market that made up 90% of the global Bitcoin market.

In June 2019, the People’s Bank of China released a document to remove access to both foreign and foreign online and Initial Coin Offering websites, in an attempt to suppress all cryptocurrency transactions and restrict foreign exchange.

The statement also highlighted the risks of cryptocurrency trading, saying that real money is “not guaranteed by real profits”, its prices are easily exploited, and trade agreements are not protected by Chinese law.

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